Planning regions failing to replace reserves

UK aggregates industry still facing a struggle to replenish reserves, says new report

THE UK aggregates industry continues to be unable to replenish its output with new reserves, with eight out of 10 planning regions failing to replace reserves extracted during 2012. This is despite markets continuing at historically low levels during the year.

Industry marketing consultancy BDS Marketing Research Ltd estimate that last year, only in Scotland and the South West were aggregates companies able to fully replenish reserves.

Nationally, BDS estimate that just 70% of sand and gravel production was replaced with new consents. This is a similar rate to the previous year and continues the trend which has occurred over many years.

The national picture looks better in crushed rock, although this is solely due to one major consent in the South West. If this scheme is excluded, BDS calculate that crushed rock producers were able to replace just one in every three tonnes extracted in 2012.

The situation was particularly acute in the East Midlands – the largest crushed rock producing region – which saw no major consents during 2012.

In the industry as a whole, BDS have identified no other consents granted during 2012 for proposals that involved more than an additional 5 million tonnes of reserves.

Over the previous 15 years, BDS believe that only in 2006 has the quarrying industry more than replenished the reserves taken out during the year. In one other year, new consents granted were similar to production, but in the other 13 years, the consultancy estimates that consented reserves failed to match production.

‘The position looks no better for 2013,’ commented principal consultant Julian Clapp. ‘Applications submitted last year for new crushed rock reserves amounted to just 20 million tonnes. This equates to less than three months’ production.

‘The position looks better in sand and gravel, although the figures are boosted by one large outstanding application in the Midlands.’

BDS Marketing Research Ltd have been monitoring planning applications and consents for new minerals on a monthly basis since 1989. The company also maintains a database of all pits and quarries in the country, including details of planning decisions as well as estimates of the outputs and reserves for each site.

For further information contact BDS Marketing.